The Impact of IFRS Adoption by Greek Listed Companies on the Earnings Quality: An Empirical Investigation

N. Eriotis, T. Kounadeas, Konstantinos Liapis and E. Poutos

International Journal of Finance, Insurance and Risk Management, 2019, vol. 9, issue 3-4, 90-100

Abstract: Purpose: The accuracy and reliability of financial statements is vital for business stakeholders in order to make the appropriate decisions. This has become increasingly important in recent years and its importance has intensified with the latest financial crisis, due to the bankruptcy of major financial institutions. The research conducted aims to study the relationship between profit management and long-term lending between two periods. More specifically, it will be considered whether businesses through long-term lending manipulate their earnings before and after the adoption of international Financial Reporting Standards (IFRS). Design/Methodology/Approach: The sample consists of listed companies in the Athens Stock Exchange. One of the most authoritative methods that results in the most correct conclusions according to the bibliography is the modified model of "Jones". Findings: The findings resulting from the survey suggest that for the years 2001-2004 there is no manipulation of profits through long-term lending as for the years 2005-2015. Practical Implications: The primary goal of accounting standards adoption is to provide information for investors to make a wide range of decisions and contractual arrangements without their norms affecting the information quality on the reported earnings. Originality/Value: The information provided through the reported financial statements based on IFRS is relevant and does not affect the quality of earnings.

Keywords: Financial reporting; earnings quality; accruals; non-discretionary accruals. (search for similar items in EconPapers)
JEL-codes: G30 G32 G35 G38 M41 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:9:y:2019:i:3-4:p:90-100

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